My TDS amount is same in both Form-16 and Form-26AS. But the Form-26AS is showing my Gross Salary (13Lakh) in "Total Amount Paid / Credited". While filing return I furnished salary details from Form-16 [6.Income chargeable under the head 'Salaries'(3-5)], which is my Net-salary (10Lakh) after deducting HRA and Conveyance. To my knowledge every ITR is verified against the Form-26AS. So I'm worried, will this discrepancy (3Lakh) create any problem in future or any demand-notice? Kindly advice.
9 Replies
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 01 July 2015
No it will not. Becuase details appearing in 26AS is based on quarterly filing of TDS return wherein there is no column for section 10 deductions/exemptions viz HRA, conveyance allowance. Therefore, they must need to show salary gross and not net. However, in Q4 TDS return there are two seperate annexures Annexure I which is normal TDS deduction details based on gross salary and Annexure II is having computation for each employee, their section 10 exemptions, loss under house property (interest on housing loan) their Chapter VI-A deductions, other income reported,etc. Details appearing in Annexure -II of your employer TDS return not available for verification to deductee as the same can only been visible at the Income Tax department end. your FOrm 16 devided into two parts. Part A is nothing but reflection of your 26AS data in form of certificate. However Part B is entire computation of how your taxable income arrived at.
Employer (TDS deductor) always ensures that your Form 16 Part B should always tallied with what they have mentioned in Annexure II to avoid future problems. In case demand comes, just show your Form 16 both parts to AO duly authenticated by your employer.
Thanks and Regards,
Manoj B. Gavali
sz
(Others)
(37 Points)
Replied 01 July 2015
Thank you so much Manoj for giving this insight. I really appreciate. 
Dileep Rao
(Others)
(25 Points)
Replied 21 July 2015
Manoj Sir, I am getting error message in ITR 2 when I save the details : If the amount of salary disclosed in "Income details/Part BTI" is less than 90% of Salary reported in Schedule TDS1. Does it mean that when you deduct HRA, Conveyance, Leave encashment etc... it will always come within 10% of gross? Else, they have to remove this validation.
Hemant Nagar
(B.Com)
(23 Points)
Replied 28 July 2015
HI Manoj Sir, I am facing same problem what ever Dileep Rao describe above while efiling retrun AY 2015-16. Can you please help me?
In From 26AS Total Amount Paid/Credited is Rs. 1038932/- and Form 16 (under Income chargeable under the head 'salaries' (3-5)) is Rs. 894952/-.
Alert message showing as below while generate X M L from excel or JAVA tool.
"Amount of salary disclosed in "Income details/Part BT1" is less than 90% of salary reported in Schedule TDS1"
if i will efile this X M L, income tax department will send me some kind of notice or not?
Please sir help me!!!!
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 05 August 2015
Hi Hemant & Dilip Rao,
There is no legal section in support of such validation by department. I dont think any problems even though taxable salary income is less than 90% of the amount paid/credited as per TDS1. Take care figures you are going to show as taxable salary in income tax return must be in compliance with part B of Form 16.
Thanks and Regards,
Manoj B. Gavali
Hemant Nagar
(B.Com)
(23 Points)
Replied 21 September 2015
Thanks Manoj Sir. I had sumbited my return and finally income tax department refund my x amount in my bank account. Thanks to Manoj Sir and ITR department.
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